The market for in-flight broadband internet services will surge to $936
million annually by 2012, as airlines continue to invest in new entertainment
services in hopes of generating additional revenue, according to a recent study
by MultiMedia Intelligence (MMI).

Researchers expect in-flight broadband to generate worldwide passenger revenues
of just $6.6 million in 2008, but take off sharply in the years to come.

Although the first generation of in-flight ISPs focused almost entirely on
business class passengers, providers are now increasingly intent on targeting
coach class leisure travelers. This change in strategy is largely inspired by
research demonstrating a strong correlation between in-flight web access and the
on-ground Wi-Fi hotspot market, with is 50% consumer driven.

“In-flight broadband is entering a new era,” explained MultiMedia Intelligence
contributing analyst, Amy Cravens. “Since Boeing ended Connexion several years
ago, in-flight broadband has seemingly been void of activity. However, during
this lull, several initiatives to re-launch in-flight broadband have been under
way, as industry players prepare to launch in-flight service.”

There is currently a technology “format war” of sorts going on in the in-flight
broadband market as some providers offer services using air-to-ground (ATG)
cellular technologies and others promote satellite-based services. There is also
some division as to whether to start with less costly narrowband internet
solutions, or jump directly to a highly robust and future-proof high-speed
internet service.